New Issue: KB Home upsizes to $265 million, prices 9.1% eight-year notes at 98.014 to yield 9.45%

By Paul A. Harris

St. Louis, July 23 - KB Home priced an upsized $265 million issue of 9.1% eight-year notes at 98.014 to yield 9.45% on Thursday, according to an informed source.

Citigroup ran the books for the deal, which was increased from $250 million.

Proceeds will be used to fund the tender for the company's 6 3/8% notes due 2011.

The issuer is a Los Angeles-based builder of single-family homes, townhomes and condominiums.

Issuer:	KB Home
Face amount:	$265 million (increased from $250 million)
Proceeds:	$259.737 million
Maturity:	Sept. 15, 2017
Security description:	Senior notes
Bookrunner:	Citigroup
Co-managers:	Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
Coupon:	9.1%
Price:	98.014
Yield:	9.45%
Spread:	575.5 bps
Call protection:	Non-callable apart from make-whole provision at Treasuries plus 50 bps)
Change of control:	101 put
Trade date:	July 23
Settlement date:	July 30
Ratings:	Moody's: B1
	Standard & Poor's: BB-
	Fitch: BB-
Distribution:	Off shelf

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.